Burnpur Cement Ltd - NSE Holding of position of MD/ CEO & Chairman by same person: The Company has appointed

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  • Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory

    STAKEHOLDERS EMPOWERMENT SERVICES

    1 | P A G E

    SECTOR: CEMENT REPORTING DATE: 1ST JUNE, 2016

    BURNPUR CEMENT LTD. www.burnpurcement.com

    Burnpur Cement Ltd 1st June, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)

    NSE Code - BURNPUR NSE Market Price (₹) 9.40 NSE Market Cap. (₹Cr.) 80.18

    Sector - Cement Face Value (₹) 10.00 Equity (₹Cr.) 86.12

    52-week High/Low (₹) 12.30/7.00 Net worth (₹Cr.) 112.24

    Business Group - Indian Private TTM P/E N.A. Traded Volume (Shares) 55,469

    Year of Incorporation - 1986 TTM P/BV 0.08 Traded Volume (lacs) 5.21

    Source - Capitaline

    Corporate Office: COMPANY BACKGROUND

    Palashdiha, Panchgachia Road, Burnpur Cement Limited was incorporated on June 19, 1986 as Ashoka Concrete and Allied

    Industries Private Limited. The company has started its operation in October 1991 with a

    small plant of 30 TPD at Asansol to produce Portland Slag Cement (PSC). The company

    name was changed to Burnpur Cement Private Limited on September 18, 2001. The

    company was subsequently converted into a public limited company and the name was

    changed to Burnpur Cement Limited in November 12, 2001. Presently the plant is

    producing 1000 TPD cement and is a major producer in the eastern region.

    Burnpur Cement Limited produces and sells cement in India. It offers Portland slag cement.

    The company is also involved in the trading of cement and iron. The Company is one of the

    few cement manufacturers of Eastern India having its market presence in West Bengal,

    Jharkhand and Bihar. The company intends to expand its network in Orissa, Madhya

    Pradesh, Uttaranchal, Haryana and Delhi in the near future.

    Kanyapur, Asansol,

    Burdwan - 713341, West Bengal

    Company Website:

    www.burnpurcement.com

    TABLE 2 - PRICE PERFORMANCE

    31st May,

    2016

    29th May,

    2015

    30th May,

    2014

    % Change CAGR for 2

    years 2016 vs 2015 2015 vs 2014

    Price (₹) 9.40 7.85 10.10 19.75% -22.28% -3.53%

    Trading Volume (Shares)

    (yearly avg.) 2,33,283 2,57,932 45,847 -9.56% 462.59% -

    NSE Market Cap. (in ₹Cr.) 80.96 64.80 76.31 24.94% -15.08% 3.00%

    Source - Money Control

    http://www.burnpurcement.com/ http://www.burnpurcement.com/

  • Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory

    STAKEHOLDERS EMPOWERMENT SERVICES

    2 | P A G E

    SECTOR: CEMENT REPORTING DATE: 1ST JUNE, 2016

    BURNPUR CEMENT LTD. www.burnpurcement.com

    s

    TABLE 3 - FINANCIALS

    (₹Cr.) 2015 2014 2013 % Change CAGR for 2

    years 2015 vs 2014 2014 vs 2013

    Net Worth 112.24 104.87 93.74 7.03% 11.87% 9.42%

    Current Assets 63.41 52.23 45.25 21.41% 15.43% 18.38%

    Non-Current Assets 106.96 104.56 93.82 2.30% 11.45% 6.77%

    Total Assets 170.38 156.79 139.07 8.67% 12.74% 10.69%

    Investments 85.97 82.85 76.46 3.77% 8.36% 6.04%

    Finance Cost 4.54 3.97 2.55 14.36% 55.69% 33.43%

    Long Term Liabilities 9.06 11.06 11.56 -18.08% -4.33% -11.47%

    Current Liabilities 49.08 40.85 33.78 20.15% 20.93% 20.54%

    Turnover 82.32 93.36 83.76 -11.83% 11.46% -0.86%

    Profit After Tax (PAT,

    ₹Cr.) 1.17 2.70 3.17 -56.67% -14.83% -39.25%

    EPS (₹) 0.14 0.42 1.00 -65.87% -58.48% -62.36%

    Source - Money Control/Annual Report

    Discussion as per Company:

    During the financial year 2013-2014 gross sale and other income for year ended 31st March 2014 was ₹109.06 Crores as

    against ₹105.29 Crore in the previous year. In 2013-14 the Company has produced 191649.30 M.T. against 174348.3 M.T. in

    the previous year. The effective capacity utilization was 63.88 against 58.11% in the previous year. Due to increase in finance

    cost the profit during the year has affected more compared to previous year.

    The project at Patratu has been delayed further due to one of the civil contractor who left the the job in the middle and it

    took some time appoint the new civil contractor. However, the grinding unit of the plant is ready and grinding will start after

    the connection of power from Damodar Valley Corporation (DVC) is complete. The power connection from DVC is going on

    and will complete very shortly. For completion of the clinkerisation unit it will take another 5-6 months.

    The gross sale and other income for the financial year ended 31st March 2013 was ₹105.53 Crores as against ₹52.77 Crore for

    the previous year. Due to better marketing strategies adopted by the management turnover of the Company has crossed

    ₹100 Crore.

    During the financial year 2012-2013 The gross sale and other income for the financial year ended 31st March 2013 was

    ₹105.53 Crores as against ₹52.77 Crore for the previous year. Due to better marketing strategies adopted by the management

    turnover of the Company has crossed ₹100 Crore.

    Due to increase in cost of power & fuel and clinker the profit during the year has affected more compared to previous year.

    After completion of Patratu project, which is an integrated plant (Clinkering & Grinding) the cost of clinker will be reduced

    than purchase from market.

    AUDIT QUALIFICATIONS

    Audit Qualifications in last 3 years: The Auditors have not raised any qualifications in the last three years.

    Response Comment

    Frequency of Qualifications Not Applicable

    Have the auditors made any adverse remark in last 3 years? No

    Are the material accounts audited by the Principal Auditors? Yes -

    Do the financial statements include material unaudited

    financial statements? No -

    http://www.burnpurcement.com/

  • Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory

    STAKEHOLDERS EMPOWERMENT SERVICES

    3 | P A G E

    SECTOR: CEMENT REPORTING DATE: 1ST JUNE, 2016

    BURNPUR CEMENT LTD. www.burnpurcement.com

    TABLE 4: BOARD PROFILE (As on 31st March, 2015)

    Regulatory Norms Company

    % of Independent Directors on the Board 33% 42.86%

    % of Promoter Directors on the Board - 42.86%

    Number of Women Directors on the Board At least 1

    Classification of Chairman of the Board - Non-Executive Director

    Is the post of Chairman and MD/CEO held by the same person? - 0

    Average attendance of Directors in the Board meetings (%) - 69.39%

    Source - Money Control/Annual Report

    Composition of Board: As per Regulation 17(i)(b) of the Listing Regulations, 2015, the Company should have at least 33%

    Independent Directors as the Chairman of the Board is a Non-Executive Director. The Company as on 31st March, 2015 has

    42.86% of Independent Directors and hence, it meets the regulatory requirements.

    Board Diversity: The Company has 7 directors out of which 6 are male and 1 is female. The Company is compliant as per

    Clause 17 of the Listing Regulations, 2015 regarding the requirement of at least one-woman director.

    Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Prem Prakash Sharma as the

    Chairman of the Company.

    TABLE 5 - FINANCIAL RATIOS

    Ratios 2015 2014 2013 % Change

    2015 vs 2014 2014 vs 2013

    Tu rn

    o ve

    r

    R at

    io s

    Inventory Turnover 4.47 4.02 5.97 11.18% -32.59%

    Debtors Turnover 2.34 5.46 4.66 -57.12% 17.33%

    Fixed asset Turnover 0.77 0.89 0.89 -13.80% 0.01%

    Current Asset Turnover 1.30 1.79 1.85 -27.37% -3.43%

    R et

    u rn

    R at

    io s Operating Profit Margin 2.09% 4.05% 5.66% -48.39% -28.45%

    Net Profit Margin 1.42% 2.89% 3.78% -50.86% -23.58%

    Return on Assets (ROA) 0.69% 1.72% 2.28% -60.12% -24.45%

    Return on Equity (ROE) 1.04% 2.57% 3.38% -59.51% -23.87%

    Return on Capital Employed (ROCE) 5.77% 8.06% 8.14% -28.46% -0.96%

    Li q

    u id

    it y

    R at

    io s

    Current Ratio 1.29 1.28 1.34 1.05% -4.55%

    Quick Ratio 0.92 0.71 0.92 29.05% -23.11%

    Cash Ratio 0.20 0.29 0.39 -31.20% -25.37%

    Working Capital Turnover ratio 5.74 8.20 7.30 -29.98% 12.34%

    So lv

    en cy

    R at

    io s Debt to equity ratio 0.23 0.30 0.28 -21.63% 4.32%

    Interest Coverage Ratio 1.38 1.95 2.86 -29.37% -31.72%

    Tr ad

    in g

    R at

    io s

    Market Cap / Sales 1.07 0.95 1.05 13.41% -1